Ameriprise 2014 Annual Report Download - page 188

23. Commitments, Guarantees and Contingencies
Commitments
The Company is committed to pay aggregate minimum rentals under noncancelable operating leases for office facilities
and equipment in future years as follows:
(in millions)
2015 $83
2016 70
2017 66
2018 58
2019 47
Thereafter 99
Total(1) $ 423
(1) Minimum payments have not been reduced by minimum sublease rentals due in the future under noncancelable subleases.
For the years ended December 31, 2014, 2013 and 2012, operating lease expense was $85 million, $85 million and
$84 million, respectively.
The following table presents the Company’s funding commitments as of December 31:
2014 2013
(in millions)
Commercial mortgage loans $ 55 $ 71
Consumer mortgage loans 491 542
Consumer lines of credit 3 4
Affordable housing partnerships 124 137
Total funding commitments $ 673 $ 754
Since the Company expects many of the commitments related to consumer mortgage loans to expire without being drawn,
total commitment amounts do not necessarily represent the Company’s future liquidity requirements. In addition, the
commitments include consumer credit lines that are cancelable upon notification to the consumer.
Guarantees
The Company’s life and annuity products all have minimum interest rate guarantees in their fixed accounts. As of
December 31, 2014, these guarantees range up to 5%.
The Company is required by law to be a member of the guaranty fund association in every state where it is licensed to do
business. In the event of insolvency of one or more unaffiliated insurance companies, the Company could be adversely
affected by the requirement to pay assessments to the guaranty fund associations.
The Company projects its cost of future guaranty fund assessments based on estimates of insurance company insolvencies
provided by the National Organization of Life and Health Insurance Guaranty Associations (‘‘NOLHGA’’) and the amount of
its premiums written relative to the industry-wide premium in each state. The Company accrues the estimated cost of
future guaranty fund assessments when it is considered probable that an assessment will be imposed, the event obligating
the Company to pay the assessment has occurred and the amount of the assessment can be reasonably estimated.
The Company has a liability for estimated guaranty fund assessments and a related premium tax asset. At both
December 31, 2014 and 2013, the estimated liability was $14 million and the related premium tax asset was $12 million
and $11 million, respectively. The expected period over which guaranty fund assessments will be made and the related tax
credits recovered is not known.
Contingencies
The Company and its subsidiaries are involved in the normal course of business in legal, regulatory and arbitration
proceedings, including class actions, concerning matters arising in connection with the conduct of its activities as a
diversified financial services firm. These include proceedings specific to the Company as well as proceedings generally
applicable to business practices in the industries in which it operates. The Company can also be subject to litigation arising
out of its general business activities, such as its investments, contracts, leases and employment relationships. Uncertain
economic conditions, heightened and sustained volatility in the financial markets and significant financial reform legislation
may increase the likelihood that clients and other persons or regulators may present or threaten legal claims or that
regulators increase the scope or frequency of examinations of the Company or the financial services industry generally.
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